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Zebra Technologies Corporation

A class action lawsuit has been commenced in the United States District Court for the Eastern District of New York against Zebra Technologies Corporation ("Zebra" or the "Company") (NASDAQ: ZBRA), on behalf of all purchasers of Zebra common stock during the period between March 17, 2015 through May 9, 2016 (the "Class Period"). The lawsuit charges Zebra and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

Zebra designs, manufactures, and sells a wide range of products that capture and move data, including, mobile computers, barcode scanners and imagers, radio frequency identification device readers, wireless LAN solutions and software, and specialty printers for barcode labeling and personal identification.

The lawsuit alleges that during the Class Period, defendants failed to disclose that Zebra had understated its income taxes through the end of 2015, underaccrued certain 2015 estimates, in particular with respect to its sales commission plan, and overstated the net realizable value of trade receivables acquired in connection with the Company's acquisition of Motorola's Enterprise division. Zebra also failed to disclose the impact of material weaknesses identified in its internal controls and procedures over financial reporting and disclosure, which caused the misstatements and rendered the Company's financial guidance for 2015 and the first and second quarters of 2016 materially false and misleading. As a result of defendants' false statements, Zebra common stock traded at artificially inflated prices during the Class Period.

On August 11, 2015, Zebra issued a press release announcing its second quarter 2015 financial results for the three months ended July 4, 2015 ("2Q15"), which reported a significant decline in the Company's adjusted EBITDA margin, which fell 220 basis points, from 17% in 1Q15 to 14.8% in 2Q15. On this news, the price of Zebra common stock plummeted more than $26 per share from $110.04 to $83.80 per share on August 11, 2015, damaging investors.

On February 25, 2016, Zebra issued a press release announcing its fourth quarter 2015 financial results for the three months ended December 31, 2015 ("4Q15"). The $952.7 million in revenues reported failed to meet the $960.3 million the Company had led investors to expect. The Company also reported a GAAP net loss for 4Q15 of $6.8 million. The same day, before the opening of trading, Zebra held a conference call with analysts and investors. On the call, defendants also disclosed that Zebra's 4Q15 wireless LAN sales were also down from those reported in 1Q15. Yet, defendants continued to make additional positive statements about the Motorola Enterprise acquisition and the Company's business metrics and financial prospects. On this news, Zebra stock fell from $70.04 to close at $59.78 per share.

Then, on May 10, 2016, before the open of trading, Zebra announced disappointing financial results for its first quarter of 2016. Also on May 10, 2016, Zebra filed its quarterly report on Form 10-Q with the SEC for the first quarter of 2016, which confirmed that Zebra had found defects in its internal controls in 2015 that had impaired its ability to accurately forecast its pretax income and deferred taxes. On this news, the price of Zebra stock dropped $62.58 to $51.46 per share, damaging investors.

If you acquired Zebra securities during the Class Period, you may, no later than September 25, 2017, request that the court appoint you lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.

If you are a current or former Zebra shareholder and wish to obtain additional information, please fill out the contact form at the link below.


Investigation Contact Form

Zebra Technologies Corporation Contact Form



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